SBI PPF Account: The Public Provident Fund (FPP) is an investment strategy provided through private and public sector banks organized by the Government of India. This framework was initiated in 1968 by the National Savings Institute under the Ministry of Finance. As we all know that the biggest trading giant is the State Bank of India, many people are prioritizing opening an SBI PPF account as customers can find more bank branches across the country. Financial analysts also mention that SBI PPF account is one of the preferred PPF alternatives in India. For all of us, a public provident fund plan has become a popular way to create a retirement pool. Risk-free filing personality and tax-free income are the top reasons millions of people choose this strategy. The SBI public provident fund account is often among the most popular alternatives among various public and private sector banks that offer PPF account services.
Eligibility is required to open an SBI PPF account
It's a good idea to open a PPF account, but accept some of the eligibility criteria listed below:
- On her behalf, a person with Indian citizenship can open an SBI PPF account. There is no maximum age to open an account.
- Undivided Hindu families and Non-Resident Indians (NRIs) are not eligible to open a PPF account.
- A parent / guardian may open an SBI PPF account on behalf of a minor child at designated SBI branches.
Documents required to open an SBI PPF account
You should have the following documents on hand while applying for an SBI PPF account.
- PPF account opening form (Form A) / A signed copy of Form A.
- Proof of identity: Aadhaar, PAN, driver's license, voter ID, etc. (must be self-certified).
- Proof of address: passport, ADAR card, electricity bill
- Passport size photos
The main points of the SBI PPF calculation
Some of the main features and benefits of PPF are as follows:
- An SBI PPF account can be opened with a minimum balance of Rs. 500 up to a maximum of Rs. 1.5 lakhs per year
- Deposits can be made to the PPF account with a maximum of 12 annual installments or through a lump sum.
- Deposits to the SBI PPF account can be made online through Internet banking and mobile banking services, as well as offline by check or money order.
- You must specify the privacy of your family as a PPF candidate when opening the account. And also the filter details can be modified at a later time as per your convenience.
- It is not possible to start a new PPF account by NRI, but if an Indian citizen becomes NRI before the expiration of the account, then this SBI PPF account can be maintained without considering its continuation or renewal until the expiration date.
Procedure to open an SBI PPF account
Generally speaking, at a specific post office or bank branch, a PPF account can be easily opened. However, if you are a SBI Bank customer, opening a PPF account is a very simple job that can be done without any hassle in just seconds. As an SBI account holder, you can open a PPF account online anytime, anywhere without compromising your convenience 24 hours a day, 7 days a week, 365 days a year. The Subsidiary Body for Implementation (SBI) has revealed the introduction of a digital portal that allows the customer to create a real account online and free Out of Trouble (PPF) immediately. Using SBI digital platform i.e Online Banking and Mobile Banking, which is known as India's first digital facility to open a PPF account provided by SBI, the process of opening your PPF account is still a few clicks away. away. Follow the steps listed below to open an SBI PPF account from your home or workplace.
- Login to your SBI mobile bank account or your net bank account with the required credentials, ie your user ID and password.
- Go now to the menu "Requests and inquiries" and click on the option "New PPF account"
- You will now be redirected to the next page, where you must fill out the PPF form completely.
- Once you have completed the PPF form, you will get a reference number and a link to download the form that you will need to print later.
- Now put your mark on the PPF form when necessary and attach the form to all required "Know Your Customer" documents and passport size photos.
- Now visit your preferred SBI PPF account branch to submit the form to complete the account opening procedures within 30 days of applying for an SBI PPF account.
How to withdraw money from your SBI PPF account?
Some of the notable components of the SBI PPF account balance withdrawal procedure are listed below:
- From the fifth year on, SBI allows you to withdraw one lot from your PPF account each year.
- To initiate a withdrawal from your SBI Public Provident Fund account, you must download the PPF C form, fill it out properly and send it to the designated SBI PPF branches.
- At the end of the fourth year prior to the year of withdrawal or the PPF account balance at the end of the previous year, the maximum amount you can withdraw is limited to less than 50 percent of the SBI PPF account balance.
Key points to consider when expanding your SBI PPF account
After completing 15 years from the account opening date, SBI allows you to extend your PPF account to a later period until expiration. Some important points to remember regarding the SBI PPF account extension are covered below:
- In the event that the PPF account maintained by NRI expires, SBI does not authorize the extension of the PPF.
- To expand your PPF account, you must file PPF Form H at the bank one year before the expiration date of the account.
- During the rollover period, your SBI PPF account will continue to earn interest at the prevailing rate.
- During the extension period, you have the option of not making any other contributions to the pending PPF account.
- After the account expires, you can extend your SBI PPF account multiple times in a set of 5 years in a row.
Procedure to check the balance of SBI PPF Account
Using multiple online and offline methods, SBI allows you to check your PPF account balance, as well as all the account details. To check your SBI PPF balance, please follow the key details below to learn more about it.
- To check your PPF account balance online, ie mobile banking or internet banking, you can log into your account with the required credentials.
- You must first link your SBI checking / savings account to your SBI PPF account and enable net / mobile banking to check your SBI Public Provident Fund account balance online.
- All you have to do is update the SBI PPF account ledger to verify your PPF account balance in the event of an offline action.
Procedure to transfer your SBI PPF account
You are allowed to transfer your PPF account from one SBI branch to another and from / from banks and other post offices throughout India. Follow the key details mentioned below to start the same.
First, you must contact the branch of your existing SBI PPF account and submit a request to transfer your PPF account.
- Basic details, such as current PPF account / branch number, as well as details of the bank / post office to which you want to transfer your account, should be specified in the application form.
- Before submitting the application form to the bank, make sure that the current PPF account passbook is correctly attached to the application form.
- Once the PPF account transfer has been approved by your current bank / post office, the account will be sent with your records / documents to the new bank branch / post office to which you transfer your account.
- Next, to validate your details and get your new PPF account approved with the new branch / bank / post office, you must visit the new bank branch / post office with the original KYC records.
- Once your account is approved and activated, you will get a new ledger from the bank / post office.
A loan against your SBI PPF account
You can apply for a loan against the PPF account as the holder of the SBI PPF account, according to several basic terms and conditions, listed below:
- Subject to some basic terms and conditions, partial withdrawal of the PPF balance is also allowed from the sixth year onwards, that is, after the end of the fifth year from the account opening date. At any one time, the maximum amount you can withdraw is 50 percent of the money invested in your PPF account.
- After completing at least 3 years of your PPF account but no more than 6 classified years from the account opening date, the loan can be used against the SBI PPF account by completing PPF Form D.
- The maximum PPF loan available under this policy is equivalent to 25 percent of the pool of PPF accounts announced at the end of the second year.
- The loan interest rate of 2% is higher than the related PPF rate, that is, 9.1% of the loan versus the PPF rate for the PPF of 7.1% respectively.
- Subject to SBI guidelines and full payment of the previous loan against PPF, the PPF loan can be used multiple times.
Available methods for depositing to SBI PPF account
Deposits can be made online, such as mobile banking or online banking services, as well as offline, by check or money order to the SBI PPF account. Follow the key details listed below to learn more about the available modes.
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- After linking your SBI checking / savings account to your existing PPF account, you can make deposits digitally with the help of online banking or mobile banking.
- It is also possible to make online transfers to the PPF account using ECS, NEFT and standing instructions.
- Offline deposits with demand or check are also allowed.